Goodwill and Intangibles

12 Months Ended

Dec. 31, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangibles

Note 6: Goodwill and Intangibles

Hilton allocated $3.5 billion of goodwill to us as part of the Blackstone Merger and during the year ended December 31, 2008, we recognized a $2.7 billion impairment loss. Additionally, we typically evaluate the carrying value of our goodwill annually. However, due to the effects of COVID-19, including (i) the significant decline in our common stock price, (ii) negative operating cash flows in the first quarter of 2020, (iii) the suspension of operations at certain of our hotels, and (iv) significant declines in occupancy and demand, we assessed goodwill during the first quarter of 2020. We determined that the carrying value of our consolidated and unconsolidated hotel reporting units exceeded their respective estimated fair value and fully impaired our remaining goodwill balance, recognizing an impairment loss of $607 million in the first quarter of 2020. Refer to Note 8: “Fair Value Measurements” for additional information.

Our goodwill balance and related activity was:

	Goodwill		Accumulated Impairment Losses			Balance
	(in millions)
Balance as of December 31, 2018	$	2,709	$	(2,102	)	$	607
Impairment loss		—		—			—
Balance as of December 31, 2019		2,709		(2,102	)		607
Impairment loss		—		(607	)		(607	)
Balance as of December 31, 2020	$	2,709	$	(2,709	)	$	—

Intangible assets were:

	December 31,
	2020			2019
	(in millions)
Air rights contract(1)		45			45
Other		8			8
Accumulated amortization		(8	)		(7	)
	$	45		$	46

^{(1) In conjunction with the Merger, we acquired an air rights contract as part of the Hyatt Regency Boston, which expires in September 2079 and requires no payments through maturity.}

As of December 31, 2020, we estimated our future amortization expense for our intangible assets to be:

Year	(in millions)
2021	$	1
2022		1
2023		1
2024		1
2025		1
Thereafter		40
	$	45